2. Procurement
Procurement involves the process of selecting vendors, establishing payment terms,
strategic vetting, selection, the negotiation of contracts and actual purchasing of
goods. Procurement is concerned with acquiring (procuring) all of the goods, services,
and work that is vital to an organization.
E-Procurement
e-Procurement or electronic procurement refers to the process of purchase and sale of
goods or services through electronic methods, primarily the Internet. e-Procurement
consists of Indent Management, RFX creation, e-Tendering, e-Auctioning, Vendor
Management and Contract Management among other processes. . An e-Procurement
solution can automate the whole process, thus saving the organizations from the hassle
and irregularities involved in manual procurement. e-Procurement portals are designed
for users to register as a buyer or supplier, submit all the relevant documents online and
take part in the tendering process that follows.
3. Traditional vs. E-Procurement
Traditional Buying Process E-Procurement Process
Paper Based : Floating Enquiry, Inviting
Quotations,Evaluation,Negotiations,Purchase
Order,Follow-ups,etc.
Paper Less : Online Process without Using Paper
Biased : The terms and conditions are favourable
to either seller or buyer depending on his strength.
Non-Biased : Terms and Conditions mutually
acceptable and varies with each contract.
Secretive : Bidder not allowed to know the
competitor’s Name s and well as their offerings.
Transparent : Each of the competitors know each
others prices (not the names) as auction is online.
Time-Consuming : Takes Some times months
together for the final placement of order.
Quick Process : Can be finished with in a few
hours.
4. Building Blocks of E - Procurement
Request for Quotation
Offer Evaluation
Reverse Action
Purchase Order
Order Acceptance
Document Status
Progress Status
Payment Status
Reverse Action
A reverse auction is a type
of auction in which the roles of
buyer and seller are reversed. In an
ordinary auction(also known as a
'forward auction'), buyers compete
to obtain goods or services by
offering increasingly higher prices.
Easy Process
Global Reach
Transparency
5. E - Procurement
Reduction in the Procurement Cost and Procurement cycle time.
Supports Buyer – Seller Collaboration by Timely Communication.
Identifying, Evaluating the suppliers and Calling for the bids are eliminated and
process simplified by E – Procurement Process.
Only Software or Website Maintenance Cost Exist.
Large Data Base can be Created.
Benefits of Reverse Auction.
E – Procurement Types and Models
Web-based ERP
E-MRO ( Maintenance ,Repair and Operating )
E-Sourcing
E-Tendering
E- Reverce Auctioning
E-Informing
6. E–Procurement Models
Buyer – Centric e-procurement Model
Seller– Centric e-procurement Model
Third Party – Managed e-procurement Model
Government of Andhra Pradesh is the first State in India Adopted E-procurement Process
for all Departments at single website.( https://tender.apeprocurement.gov.in/ )
Editor's Notes
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